In a strategic effort to support steel manufacturers in Nigeria, the Lagos State Government has reaffirmed its dedication to working alongside the Federal Government to enhance the sector.
Governor Babajide Sanwo-Olu acknowledged the challenges posed by unreliable power supply on steel production and pledged full cooperation with the Ministry of Steel Development to drive necessary improvements.
Babajide Sanwo-Olu, represented by his Deputy, Dr. Kadri Obafemi Hamzat, reaffirmed Lagos State’s support for the steel sector during a meeting with the Minister of Steel Development, Prince Shuaibu Abubakar Audu, on Tuesday. He acknowledged that steel companies are significant power consumers, a fact well known due to their energy-intensive operations.
“Lagos is grateful to Mr. President for signing the Fifth Amendment Bill No.33, the Devolution of Powers, which expands the scope of State Legislative powers to include the generation, transmission, and distribution of electricity within areas covered by the national grid system. This decentralized power system is the only way forward, allowing states to take control of their own destinies,” the governor said.
Governor Sanwo-Olu stated that the state had established various commissions, including the Lagos State Electricity Regulation Commission, independent market operators, and a rural fund to assist.He added that the state government has initiated a Request for Proposal (RFP) to facilitate the development of five power plants in Lagos, a process that is currently in motion.
The governor reiterated the state’s dedication to meeting power generation demands to support steel industry growth.
“In another year, once the plants are operational, we will begin building our grids in a way that ensures these industries have the power they need. We are starting and aligning with the new power economy agenda set by Mr. President,” he said.
Minister of Steel Development Prince Audu also expressed appreciation for the Lagos State Government’s efforts in building an environment for the steel sector to grow. He added that addressing these challenges is crucial to meet President Bola Ahmed Tinubu’s goal to create a $1 trillion economy for Nigeria.
“Sixty percent of private steel companies, based on data from the Federal Ministry of Steel Development, operate in the Lagos, Ikorodu, Ogun, Sagamu, and Abeokuta areas. I am here with my team to engage with both the government and private steel companies to understand their challenges, identify opportunities, and explore how the ministry can create fiscal incentives to improve their operations,” the minister said.
Source: Zawya